HomeMy WebLinkAbout2020-69 - Approving a Substantial Amendment to the 2020-2021 Annual Action Plan for the Federal Community Development Block Grant ProgramRESOLUTION NO. 2020-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING A
SUBSTANTIAL AMENDMENT TO THE 2020-2021
ANNUAL ACTION PLAN FOR THE FEDERAL
COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
WHEREAS, the City of Newport Beach ("City") participates in the United States
Department of Housing and Urban Development's ("HUD") Community Development
Block Grant ("CDBG") Program;
WHEREAS, HUD requires the City to prepare a Five -Year Consolidated Plan for
the use of HUD grant programs outlining the use of the CDBG funds and the strategic vision
for housing and community development in the City;
WHEREAS, the City Council adopted Resolution No. 2020-51 on May 12, 2020
approving the 2020-2024 Consolidated Plan, the 2020-2021 Annual Action Plan, and the
Citizen Participation Plan for the CDBG Program;
WHEREAS, the 2020-2021 Annual Action Plan appropriates the CDBG annual
grant and other available grant funds during the fiscal year;
WHEREAS, as a result of COVID-19, the United States Congress passed the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") in March 2020,
authorizing $2.2 trillion in stimulus measures to prevent, prepare for, and respond to the
COVID-19 pandemic, including $2 billion for CDBG entitlement communities;
WHEREAS, on March 4, 2020, California Governor Gavin Newsom issued a
Proclamation of a State of Emergency followed by multiple executive orders including
Executive Order N-33-20 ordering all residents to stay at home;
WHEREAS, the City will receive an additional $219,324 from HUD under the
CARES Act ("CDBG-CV"), which is separate and distinct from the City's regular allocation
of CDBG funds;
WHEREAS, a substantial amendment to the 2020-2021 Annual Action Plan is
necessary because the CDBG-CV funds were not identified in the previously approved
plans, therefore, the amendment is prepared to appropriate the CDBG-CV funds and
create an economic development program to issue small business relief grants;
Resolution No. 2020-69
Page 2 of 3
WHEREAS, the CDBG capital funds will be allocated to an economic development
program to be determined and the CDBG-CV funds, must be appropriated to CDBG eligible
activities consistent with the City's 2020-2024 Consolidated Plan;
WHEREAS, in the event of a substantial amendment to an annual action plan, the
Citizen Participation Plan normally requires a 30 -day public review period followed by a
public hearing prior to adoption; however, in light of COVID-19, HUD reduced the notice
period to 5 days and authorized the City to determine the form of notice pursuant to the Waivers
of Community, Planning and Development ("CPD") Grant Program Requirements to Prevent
the Spread of COVID-19 and Mitigate Economic Impacts caused by COVID-19;
WHEREAS, on July 8, 2020, the City published notice on the City's website and
sent an e-mail notification that the draft substantial amendment to the 2020-2021 Annual
Action Plan would be available to the public for review and comment from July 8, 2020 to
July 14, 2020;
WHEREAS, a telephonic hearing was held by the City Council on July 14, 2020, due
to the Declaration of a State of Emergency and Proclamation of Local Emergency related to
COVID-19, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and the Waivers of CPD Grant Program
Requirements to Prevent the Spread of COVID-19 and Mitigate Economic Impacts approved
by HUD. Evidence, both written and oral, was presented to, and considered by the City
Council at this public hearing; and
WHEREAS, the City Council desires to amend the 2020-2021 Annual Action Plan and
approve the substantial amendment to the 2020-2021 Annual Action Plan.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council hereby approves the substantial amendment to the 2020-
2021 Annual Action Plan as provided in Exhibit A, attached hereto and incorporated herein by
reference.
Section 2: The City Council does hereby authorize: (a) the City Manager, or his/her
designee, to: 1) submit the 2020-2021 Annual Action Plan as amended to HUD; 2) execute the
CDBG-CV Grant Agreement and all related documents on behalf of the City; and 3) execute
all subrecipient agreements with the organizations receiving allocations of CDBG and CDBG-
CV funds in the 2020-2021 Annual Action Plan as amended; and (b) the Community
Development Director, or his/her designee to be the official representative of the City to
administer the program and submit required environmental documentation to HUD for CDBG
projects.
Resolution No. 2020-69
Page 3 of 3
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this resolution
is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this resolution. The City Council
hereby declares that it would have passed this resolution, and each section, subsection,
sentence, clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 5: The City Council finds the approval of the substantial amendment to the
2020-2021 Annual Action Plan is exempt under 24 CFR Part 58, Section 58.34 of the
National Environment Policy Act of 1969 ("NEPA"), as amended.
Section 6: The City Council finds the adoption of this resolution and the approval of
the substantial amendment to the 2020-2021 Annual Action Plan is not subject to the
California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 7: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 14th day of July, 2020.
Will O'Neill
Mayor
ATTES � �tiW P0,4�
Leilani I. Brown
City Clerk ,
rq�ifioa�'�P
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
.,— C
Aaron C. Harp
City Attorney
Attachment: Exhibit A - Substantial Amendment to the 2020-2021 Annual Action Plan
EXHIBIT A
This page intentionally left blank.
NEWPORT BEACH
CITY COUNCIL
Will O'Neill
Mayor
Brad Avery
Mayor Pro Tem
Joy Brenner
Council Member
Diane B. Dixon
Council Member
Duffy Duffield
Council Member
Jeff Herdman
Council Member
Kevin Muldoon
Council Member
This page intentionally left blank.
TABLE OF CONTENTS
ExecutiveSummary ....................................................................................1
Background..............................................................................................1
Sources....................................................................................................1
Uses of Community Development Block Grant (CDBG-CV).....................1
AP -15 Expected Resources........................................................................2
Matching Requirements........................................................................... 2
AP -20 Goals and Objectives....................................................................... 3
AP -35 Projects and activities ...................................................................4
AP -90 Program Specific Requirements.......................................................6
Appendices
Appendix ACitizen Participation
Appendix BSF-424, SF -424D, Certifications
CARES Act Substantial Amendment to the 2020-2021 Action Plan
EXECUTIVE SUMMARY
Background
Congress passed the Coronavirus Aid, Relief, and Economic Security
(CARES) Act and the President signed it on March 27, 2020 authorizing $2.2
trillion in a variety of stimulus measures to prevent, prepare for, and respond
to the COVID-19 pandemic. The law included $2 billion for Community
Development Block Grant (CDBG) entitlement communities. The City of
Newport Beach receives regular formula -based entitlement grants of CDBG
funds through the United States Department of Housing and Urban
Development (HUD) each year.
Sources
The City of Newport Beach will receive the following grant under the CARES
Act:
CDBG-CV $219,324
These funds are separate and distinct from the City's regular CDBG funds.
As of June 15, 2020, HUD continues to release guidance for these programs
containing modified program requirements. Subject to the CARES Act and
emerging policy from HUD, the City Council is responsible for determining
how CDBG-CV funds will be used to prevent, prepare and respond to the
COVID-19 virus. This draft Action Plan Amendment describes the approved
investment of CDBG-CV funds.
Uses of Community Development Block Grant (CDBG-CV)
Small Business Relief Grants $175,460
CDBG-CV Program Administration $43,864
Updated Uses of Regular Community Development Block Grant
(CDBG)
The original 2020-2021 Action Plan adopted on May 12, 2020 included a
generalized activity for Economic Development Assistance using $250,371
of CDBG funds. Those funds will now be used for the Small Business Relief
Grants project described in this Action Plan Amendment with specific
numerical goals for the combined use of the regular CDBG resource and the
CDBG-CV resource.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 1
AP -15 EXPECTED RESOURCES
The CARES Act allocations from HUD include $219,324 of CDBG-CV funds.
The period of performance for these grants under the law is from March 27,
2020 to September 30, 2022. Additionally, $250,371 of funding allocated to
Economic Development Assistance in the original 2020-2021 Action Plan will
be used in conjunction with CARES Act CDBG-CV funds.
Table 1 — Expected Resources
Program
Uses of Funds
Expected Amount Available
Narrative
Description
Allocation:
Program
Prior Year
Total:
Income:
Resources:
Economic
CARES Act
Development
allocation of
CDBG-CV
$219,324
$0
$0
$219,324
CDBG to
Administration
address
COVID-19
Matching Requirements
The Cares Act allocation of CDBG-CV funds does not require a local
matching funds contribution.
Note: Information on this page will also be used to update the 2020-2024
Consolidated Plan "SP -35 Anticipated Resources" section, adding the
CDBG-CV allocation shown in Table 1.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 2
AP -20 GOALS AND OBJECTIVES
Table 2 — Goals and Objectives
Goal Name
Time Period
Category
Needs
Addressed
Funding
Goal Outcome
Indicator
CDBG-CV:
Businesses
Goal
Economic
Non -Housing
Economic
$175,460
Assisted:
20 Businesses
Development
2020-2022
Community
Development
Development
Regular
Assistance
CDBG:
Jobs
$250,371
Created/Retained:
16 Jobs
Description: Provide technical assistance and additional support to small
and micro businesses in the City of Newport Beach to provide job support
and fulfill economic needs of low- and moderate -income residents. Provide
one-time funding to small businesses located within the city that need
financial assistance to aid in their recovery from the temporary loss of
revenue due to the COVID-19 public health emergency.
N/A
Goal 3
CDBG-CV
2020-
Program
All
CDBG-CV:
Program
2022
Administration
$43,864
Administration
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used to pay the
City's costs to plan for the use of CDBG-CV funds, process all required
grant administration documents, forms, agreements, and payments, and to
monitor and report to HUD concerning implementation of activities in
compliance with federal regulations.
Note: Information from this page will also be used to update the 2020-2024
Consolidated Plan "SP -45 Strategic Plan Goals" section, adding CDBG-CV
funds to the Economic Development Assistance and Program Administration
goals.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 3
AP -35 PROJECTS AND ACTIVITIES
To address the goals and objectives identified in Section AP -20, the City of
Newport Beach will invest these funds for the project activities shown in the
table below.
Table 3 — CDBG-CV Project and Activities
1
Project Name
Small Business Relief Grants
Target Area
Citywide
Goals Supported
Economic Development Assistance
Needs Addressed
Economic Development
Funding
CDBG-CV: $175,460
Regular CDBG: $250,371
Description
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used for the
Small Business Relief Grant Program that provides one-time funding to
small businesses located within the city that need financial assistance
to aid in their recovery from the temporary loss of revenue due to the
COVID-19 public health emergency. To be eligible to apply for the
Small Business Relief Grant Program, a business must demonstrate
the need for financial support due to the temporary loss of revenue
resulting from the impact of the COVID-19 pandemic and the Stay at
Home order in one of the following ways:
• The business was deemed non-essential and was forced to shut
down by the state or local government; Sales from the business
are down more than 25 percent compared to the previous three
months (Prior to February 15, 2020) or a comparable 3 -month
period in 2019;
• The business has had to lay off at least one of its employees
(full- or part-time employee); or
• One or more of the employees in the business have contracted
COVID-19, while at work.
For more information, please visit:
https://www.newportbeachca.goy/government/departments/city-
man aq er/small-busi ness-prog ram -q rant
Target Date
9/30/2022
Accomplishments
Approximately 20 businesses will be assisted, 16 Jobs
Created/Retained
Location
Citywide
Planned Activities
Small Business Relief Grants (20 Businesses Assisted, 16 Jobs
Created/Retained)
CARES Act Substantial Amendment to the 2020-2021 Action Plan 4
2
Project Name
CDBG-CV Program Administration
Target Area
Citywide
Goals Supported
Program Administration, Economic Development Assistance
Needs Addressed
Economic Development
Funding
CDBG-CV: $43,864
Description
Subject to the CARES Act and emerging policy from HUD, including
program regulations and waivers, CDBG-CV funds will be used to pay
the City's costs to plan for the use of CDBG-CV funds, process all
required grant administration documents, forms, agreements, and
payments, and to monitor and report to HUD concerning
implementation of activities in compliance with federal regulations.
Target Date
9/30/2022
Estimate the
N/A — Program Administration
number and type
of families that
will benefit
Location
Citywide
Planned Activities
CDBG-CV Program Administration $43,864
CARES Act Substantial Amendment to the 2020-2021 Action Plan
AP -90 PROGRAM SPECIFIC REQUIREMENTS
In the implementation of program activities under the CDBG-CV Action Plan
will follow all HUD regulations and some or all of the waivers made available
by HUD concerning compliance matters such as program income, forms of
investment, and overall low- and moderate -income benefit (if applicable).
Community Development Block Grant -CV Program (CDBG-CV)
The following tables address HUD regulatory requirements at 24 CFR
92.220(1)(1) concerning program income and CDBG-CV low- and moderate -
income benefit.
Table 4 — Proaram Income
1. The total amount of program income that will have been received
polo
before the start of the next program year and that has not yet been
reprogrammed
0
2. The amount of proceeds from section 108 loan guarantees that will be
used during the year to address the priority needs and specific objectives
identified in the grantee's strategic plan.
0
3. The amount of surplus funds from urban renewal settlements
0
4. The amount of any grant funds returned to the line of credit for which
the planned use has not been included in a prior statement or plan
0
5. The amount of income from float -funded activities
0
Total Program Income:
0
Table 5 — Low- and Moderate -Income Benefit
1. The amount of urgent need activities*
polo
2. The estimated percentage of CDBG funds that will be used for
activities that benefit persons of low- and moderate -income. Overall
Benefit - A consecutive period of one, two or three years may be used to
determine that a minimum overall benefit of 70% of CDBG funds is used
to benefit persons of low- and moderate -income. Specify the years
covered that include this Annual Action Plan.
100%
a111VU11L 1U1 uiyeni ween activiiies may cnange depending on waivers
issued by HUD subsequent to this Action Plan amendment.
CARES Act Substantial Amendment to the 2020-2021 Action Plan 6
Summary of Public Comments
To be inserted subsequent to the public review and comment period.
P�Rj•
n
s
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2020-69, was duly introduced before and adopted by the City Council of said City at a regular
meeting of said Council held on the 14th day of July, 2020; and the same was so passed and adopted by
the following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner,
Council Member Diane Dixon, Council Member Jeff Herdman
RECUSED: Council Member Kevin Muldoon
ABSENT: Council Member Duffy Duffield
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 151h day of July, 2020.
dAz 4P70vl�
Leilani I. Brown '
City Clerk
Newport Beach, California